Rising prices in the Canadian housing market is preventing many homeowners from purchasing new homes or downsizing and truing to other alternatives such as renovating. A new research conducted by CIBC proves that majority of Canadian homeowners are unable to buy new homes and as a result as renovating their current homes to forgo the idea of buying a home.
According to the survey, there is most likely going to be an increase in home renovation this year as the survey conducted suggests that close to 50% of homeowners are going to have renovation done at their homes which is a 37% increase in home renovation in comparison to the previous year.
Moreover, majority of those planning to renovate are doing so because they cannot afford the real estate prices.
Soaring housing prices has become a great concern for buyers especially those in hot real estate markets such as in the GTA.
Kathleen Woodard, a senior vice-president and Ontario region head for CIBC noted that it is amazing how more and more people are willing to maintain their homes by repairing rather than entering the real estate market.
More than half of Canadians that choose to repair disclosed that it is less expensive to renovate a home than buy a new one given the current market prices.
This new trend is giving a rise to renovation which in the past received much less attention.
Just as buyers are scared to enter the market, sellers are also holding on to their properties for the time being until the market stabilizes.
The cost of home renovation in Canada varies depending on the region one resides in but the average cost of renovation in Canada is $11,000 whereas in the GTA it’s close to $21,000. Although this figure might look expensive, it however cannot be compared to the average cost of buying a home in Canada which presently stands at $520,000 which has increase by 3.5% since last year.
Woodard went on to explain that investing in renovations seems to be a wise decision in the current housing market and it is pleasing to know that Canadians are now in terms to the high debt rate of people and also the high home price situation.
Speaking on the topic, Scoot McGillivray, real estate investor and renovation television personality explained that although buying a home gives owners the opportunity to have access to a much wider space, home renovation can similarly have the same effect.
The survey also showcased that buying a home or renovating is mainly determined by homeowners financial abilities, the memories people have to their homes and also their real estate objectives. Home repair also gives several benefits as homeowners get to maintain their neighborhood while making their home look new again which in a way adds to the value of a home.